Monday, March 19, 2007

Quanta Services to Acquire InfraSource Services in $1.3B Deal

Two contractor firms specializing in servicing utility networks, Quanta Services Inc. and InfraSource Services Inc., announced Monday that they have agreed to a merger in which Quanta will acquire InfraSource in an all-stock transaction valued at nearly $1.3 billion based on Quanta's closing stock price as of March 16. The transaction is expected to close in Q3 2007, pending stockholder and regulatory approval. The merger agreement stipulates that InfraSource stockholders will receive 1.223 shares of Quanta common stock for each outstanding common share of InfraSource owned at closing, when Quanta and InfraSource stockholders will hold approximately 75 percent and 25 percent, respectively, of the combined company. Quanta’s services include designing, installing, repairing and maintaining network infrastructure for utilities across the country. InfraSource designs, builds and maintains transmission and distribution networks for utility and industrial clients.